Third Quarter Investor Call
The Third Quarter Investor Call, sponsored by NewPoint Real Estate Capital and moderated by Ben Swett, Managing Editor of The SeniorCare Investor, featured a panel of lending experts who offered their capital markets advice to borrowers in several different scenarios: M&A deals, refinancing troubled assets, the costs of construction lending today, and more. The panel included Nick Gesue, CEO of NewPoint, Zach Britton, Director – Originations of Locust Point Capital and Matthew Whitlock, Head of Senior Housing Investments of Berkshire Residential Investments. Read More »
Sherman & Roylance Handles California Leasehold Transaction
Sherman & Roylance arranged a successful leasehold transaction for a 144-bed skilled nursing facility in Santa Cruz, California. The transaction allowed the landlord to diversify its portfolio and the new operator to expand its footprint in the California market. The facility, originally built between 1967 and 1970, currently operates at 70% occupancy. It attracted interest from several potential tenants before a new lessee emerged as a pair of an experienced skilled nursing operator and a businessman. They formed a new operating company to acquire the facility and are looking to grow along the West Coast. The leasehold transaction was structured as a long-term, triple-net lease... Read More »
Dwight Capital’s Recent Activity
In September, Dwight Capital and its affiliate REIT, Dwight Mortgage Trust, closed $279.7 million in real estate financings. Notable transactions included three separate HUD loans; a skilled nursing facility in New York, and a skilled nursing portfolio in New Hampshire. Dwight closed a $61 million HUD 232/223(f) refinance loan for a 250-bed skilled nursing facility in New York. The facility recently underwent comprehensive renovations, including updates to resident rooms, corridors, therapy areas, kitchens and public spaces. The transaction was handled by Adam Offman. Offman also originated a $39 million HUD 232/223(f) refinance loan for a SNF and a senior living community in... Read More »
Joint Venture Acquires and Secures Financing in Maryland
Berkadia announced the sale and financing of an active adult community in Annapolis, Maryland. Built in 2002, Gardens of Annapolis features 106 units with 42-one bedroom/one-bathroom units, 23 two-bedroom/one-bathroom units and 41 two-bedroom/two-bathroom units. The property has been well-maintained over the last 20 years as a result of consistent capital investment, and has a history of high occupancy and steady performance. The transaction closed October 11, with Berkadia Seniors Housing & Healthcare facilitating both the investment sales and mortgage banking advisory. Cody Tremper, Dave Fasano, Ross Sanders and Mike Garbers closed the sale on behalf of the seller, Crow Holdings.... Read More »
Newmark Facilitates a Sale and Refinance
Newmark’s Senior Housing Team handled the sale of a seniors housing community in South Carolina. Built in 2021, New Haven at Little River features 154 independent living, assisted living and memory care units in Little River, South Carolina. Totaling 200,000 square feet, it has 89 IL, 44 AL and 19 MC units. No additional details were disclosed, QSL Management announced that it took over management on October 17 and renamed the community The Barclay at Little River. Newmark’s Seniors Housing Team also secured a $140 million cash-out refinance through Freddie Mac for a seniors housing community in Atlanta, Georgia, called Corso Atlanta. Taking out the original construction loan, the package... Read More »
Joint Venture Secures Refinancing
Mesa West Capital provided a joint venture with a loan to refinance a seniors housing community in Montvale, New Jersey. The joint venture comprises AEW Capital Management, Thrive Senior Living and Pike Construction. The five-year, floating-rate $57 million loan is secured by Thrive at Montvale. Built in 2022 by Thrive and Pike, the community features 88 independent living, 83 assisted living and 32 memory care units on 11.5 acres across 214,000 square feet. Read More »
60 Seconds with Swett: What Could Stop the M&A Momentum?
Last week, we recorded our 560th deal of 2024, which breaks the annual record for M&A volume across seniors housing and skilled nursing transactions. And we have more than two months to go. So there can be no dispute that we will set an M&A record this year, and by a large margin. But could 2024 actually end with a whimper? We ask that because the 10-Year Treasury rate, which fell to 3.6% in September, the lowest level in more than a year and a half, is now above 4.2%, or the highest level since July. Much of the optimism at the NIC conference last month hinged on the Fed’s 50-basis point rate reduction in September and the 10-Year rate was at its low then too, but what about now?... Read More »
Brookdale and the Golden Age
A lot has been made recently of the looming Golden Age of seniors housing. An analyst at Jefferies & Co. came out with a strong recommendation of Brookdale Senior Living and its potential to take advantage of the upcoming age wave. They referred to Brookdale as the leading senior living provider well positioned for this. A more accurate description would be the largest senior living provider. It did not matter, as the share price jumped by 12% during the day on very heavy volume. But we have seen this movie before. To take advantage of the Golden Age a few things have to happen, and one is to negotiate a new lease for its 121 properties with Ventas that will provide more cash flow to... Read More »
LTC M&A Sector Reaches New Transaction Volume Record
The most active dealmaking year was 2022, in which 559 transactions were announced, according to LevinPro LTC. As of Friday October 18, 2024, the senior care sector has hit a new record in terms of transaction volume. We are currently at 560 transactions, and still have some of October plus all of November and December to go. Overall, the deals announced this year have been smaller and more distressed than in previous years, while many portfolios were broken up into numerous smaller deals because of the lack of financing available for big deals. But we also hear from dealmakers that the process for closing deals is still long and difficult, making the record-high volume even more... Read More »
Do Elections Matter?
In less than three weeks we will be having an election that could set the stage for what happens in the country for many years to come. Or not. There is always a lot of fearmongering over what one candidate will do compared with the other. Usually, change comes slowly, or not at all. As is usually the case in presidential elections, there is little talk about senior care, other than the growing costs of entitlements, with no reasonable solutions coming from either side. It is a topic that is easily avoided, and we are tired of the lip service. But in Washington State, there are several initiatives on the ballot, one of which involves taxes and LTC insurance. You will remember that... Read More »Schedule a demo
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